Net profit of Sovcomflot up 9.2% to $103.1 mln in QI’2016
Sovcomflot says the Group’s net profit in January-March 2016 calculated under IFRS increased by 9.2% to USD 103.1 million.
Time charter equivalent (TCE) revenues increased by 0.4% to USD 290.8 million. Profit on vessels’ trading increased by 8.1% to USD 214.4 million, EBITDA – by 6.6% to USD 187.5 million.
Commenting on the Group’s results Sergey Frank, President and CEO of PAO Sovcomflot, said: “Sovcomflot Group achieved very good results in Q1 2016, despite the volatility encountered in some tanker market sectors that had been anticipated by our in-house analysts. Net profit for the first three months of 2016 increased by 9.2 per cent to USD 103.1 million. The Group’s successful performance in the period reflected a combination of Sovcomflot’s balanced chartering strategy and improved operational efficiency. In particular, this involved further optimisation of the fleet’s structure, in order to provide the right vessels to meet the market demand today, whilst continuing to satisfy the evolving requirements of our clients. Sovcomflot continued to replace low-yielding conventional vessels with a technologically modern fleet, which contributed to a significant increase in economic efficiency of SCF fleet’s operations. Further, the consistency of earnings of our growing core fleet sectors of gas transportation and offshore oil production supply helped offset some volatility in the conventional tanker sector. In the first quarter of 2016, innovative new vessels were launched for Sovcomflot to serve the Novy Port and Yamal LNG oil and gas projects. Also contributing to our success was a solid technical performance and the consistent work of our technical management team, our captains and crew members to ensure business and operational efficiency, whilst remaining focused on putting safety first, minimising the environmental impact of our operations and consistent implementation of innovative and energy-saving technologies.”
Nikolay Kolesnikov, Executive Vice President, Chief Financial Officer, commented: “Sovcomflot’s credit metrics continued to improve in Q1 2016. With a strengthened cash position and with total debt reduced as compared to the end of the previous quarter the net debt ratio improved to 40.7 per cent. Meanwhile, EBITDA over the last 12 months was up to a robust USD 754.2 million, resulting in the net debt to EBITDA ratio going down to 3.2.”
SCF Group (PAO Sovcomflot) is Russia’s largest shipping company and a world leader in the maritime transportation of hydrocarbons as well as the servicing and support of offshore oil & gas production. The company’s fleet numbers 144 vessels with a combined deadweight of 12.48 million tonnes. SCF Group specialises in the shipping of crude oil, liquefied gas and a wide range of oil products. The Group’s vessels perform complex towing operations and geophysical survey work at offshore oil & gas fields. Sovcomflot supports large-scale offshore energy projects in Russia and overseas, including: Sakhalin-I, Sakhalin-II, Varandey, Tangguh, Peregrino, Prirazlomnoye, Noviy Port, Yamal LNG and others. SCF Group employs over 9,300 personnel both on land and at sea. The company is registered in Saint-Petersburg and has representative offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, Madrid, Singapore and Dubai.
